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The Size Distribution of Farms and International Productivity Differences

  • Tasso Adamopoulos
  • Diego Restuccia

We study the determinants of di fferences in farm-size across countries and their impact on agricultural and aggregate productivity using a quantitative sectoral model featuring a distribution of farms. Measured aggregate factors (capital, land, economy-wide productivity) account for ? of the observed differences in farm size and productivity. Policies and institutions that misallocate resources across farms have the potential to account for the remaining diff erences. Exploiting within-country variation in crop-specifi c price distortions and their correlation with farm size, we construct a cross-country measure of farm-size distortions which together with aggregate factors accounts for ? of the cross-country diff erences in size and productivity.

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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 104 (2014)
Issue (Month): 6 (June)
Pages: 1667-97

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Handle: RePEc:aea:aecrev:v:104:y:2014:i:6:p:1667-97
Note: DOI: 10.1257/aer.104.6.1667
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